RAK poised to become a global manufacturing hub: Dr Khater Massaad

Presenting a paper on 'Manufacturing Opportunities in RAK' at the ongoing global investors'conference, he said that the project costs for setting up a factory in RAK has been about 20 % to 25 % less compared to other destinations on account of better logistics, no incidence of duties and overheads or costs incurred in bureaucratic delays.

Recounting his experience of setting up and managing RAK Ceramics- which is set to become the largest tile producer in the world by November 2005 with a global capacity of 100 million square metres of tiles, he said, 'Our time to complete a project from zero date to a fully operating factory has been around 8 to 12 months in RAK. In all other countries, it has taken at least 14 to 16 months for construction alone, not including time to go through the torturous process to get possession of land'.

He said that the productivity weighted labour costs in UAE have been comparable to lower wage rate locations such as China, India and Bangladesh where skilled and unskilled labour productivity has been 60%-65% of that measured in UAE.

'Our project development, regulatory compliance and start-up costs have been less than 2 % in Ras Al Khaimah. In all other destinations, they have varied from about 5 %- 15 %. The energy costs in RAK at 5.4 cents per kilowatt hour are the lowest compared to China, India and Bangaladesh where they have been above 7.0 cents, said Dr Massaad, who manages nine ceramic factories in UAE and six factories and subsidaries in different countries of Europe, Asia and Africa.

'These factors, coupled with the absence of taxes, lower living costs, competitive freight costs and the sound economic policies followed by H.H. Sheikh Saud bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of RAK, have created an optimal environment for manufacturing industries to set up businesses in RAK', he said.

Guillaume de Fougieres, of the ARC Glassware, made a presentation on 'Investment Experience in RAK and the UAE' at the session.